Terrascope settles an important question and should be welcomed for reinforcing transparency as a foundational norm of securities regulation.

Creditors and practitioners should take heed - when in doubt, draft guarantees clearly. Otherwise, as the ruling reflects, informal promises of support will not give creditors the “financial debt” status that they may seek under the Code.

The continued exclusion of FOCCs, the rigid profitability and control thresholds, the ambiguity around “long-term strategic investment,” and the uncertainty surrounding InvIT structures and offshore exposure caps together narrow the practical scope of the reform.